System for managing orders and method of implementation

ABSTRACT

The system of this invention manages customer orders and using vendor supplied software systems interfaced on a real-time basis to touch the data in each system on a real time basis. In effect, there is horizontal communication between the various components of the system such as inventory, purchasing, order management and receipt, logistics and inventory to have continual data flow without using a vertical software interface. As a result, customer orders are received on a real-time basis using screens that are user friendly to promptly take orders and to verify customer data and verify the ability to meet those orders. Transmission of documents within the system is minimized thereby making it more efficient, timely and cost efficient.

BACKGROUND OF THE INVENTION

[0001] 1. Field of the Invention

[0002] The present invention relates to a system for providing efficientmanagement and fulfillment of customer orders in a food processing anddistribution environment. More specifically, the invention relates to asystem having an order management function, integrated with financialservices to process orders promptly and create current and efficientfinancial records. Likewise the system includes a logistics function forprocessing orders and consolidating them into appropriate loads fordelivery over transportation systems. Integrated in the system is aninventory management system that cooperates with the order managementfunction, financial services function and logistics function to properlymanage the raw material and finished product through a warehouse fordelivery to a customer. Also included in the system is a purchasingsystem based upon an electronic catalog that streamlines the purchasingfunction by using blanket vendor orders to approve the purchase of thenecessary materials to support the system.

[0003] 2. Related Art

[0004] A software named Flashpoint provided by Knowledge Ware, Inc. isutilized to create screens for customer service representatives. PRISMsoftware provided by Marcam is used to operate IBM AS/400 mini computersto support terminals using Flashpoint software. SMS software, suppliedby ITLS of Canada, resides on the AS/400 platform to support thelogistics function and TRACS software supplied by Westeley DevelopmentCorp., supports PC's driven by the TRACS software. Rhumba/400 Softwareis supplied by Wall Data, as well as PC Support by IBM to enablecommunications between an AS/400 platform and PC terminals. Furthermore,Software 2K provided by Software 2000 of Boston, Mass. to supportfinancial functions. Marcam has issued U.S. Pat. No. 4,864,507pertaining to method and apparatus for process manufacture control. Theaforementioned vendor software and patent are hereby incorporated byreference.

[0005] None of the foregoing software is integrated to provide anefficient order management system. In the past, these software packagesoperated vertically. This prior architecture does not provide thenecessary system integration for efficient real time data management.

SUMMARY OF THE INVENTION

[0006] The present invention has the ability to efficiently receivecustomer orders, process them, create appropriate financial records andcoordinate this information with the inventory and manufacturingfunctions to prepare and load consolidated shipments for transportationto a customer. This is accomplished by touching each sub-system's database on a real time basis by horizontal integration of each system tocreate a harmonious flow of data between systems. The unique conceptallows for continual updating of the system over time.

[0007] Most importantly, a deal with a customer is settled before theorder is taken by using the horizontal data flow between systems toverify availability to meet the order, integrate customer data and pricethe deal while speaking to the customer.

[0008] It is an object of this invention to efficiently receive andprocess customer orders.

[0009] It is another objective of this invention to minimize costs of afood processing and supply business.

[0010] It is yet another object of this invention to create a systemtailored to customer profiles for the delivery of products.

[0011] It is still another object of the invention to efficiently manageinventory.

[0012] It is yet another object of the invention to efficiently assembleand deliver loads of products to customers.

[0013] It is further an object of this invention to efficiently purchaseand account for materials.

[0014] It is still another object of this invention to create afinancial system to support each of the above objectives.

[0015] It is an object of this invention to create and integrate asystem incorporating the above features at minimal cost.

[0016] It is still another object of this invention to provide businesscontrol features to manage such a system.

BRIEF DESCRIPTION OF THE DRAWINGS

[0017] The invention is better understood by reading the followingDetailed Description of the Preferred Embodiments with reference to theaccompanying drawing figures, in which like reference numerals refer tolike elements throughout, and in which:

[0018]FIG. 1 illustrates an overview of the order management system.

[0019]FIG. 1a illustrates the application software architecture.

[0020]FIG. 1b illustrates the order management update and controls.

[0021]FIG. 2 illustrates the order fulfillment and architecture.

[0022]FIG. 3 illustrates an order fulfillment customer representativescreen.

[0023]FIG. 4 illustrates an order fulfillment customer/master filemaintenance selection screen for use by a customer servicerepresentative.

[0024]FIG. 5 illustrates an order fulfillment screen for use by acustomer service representative to maintain customer master controls.

[0025]FIG. 6 illustrates a screen for order entry by a customer servicerepresentative.

[0026]FIG. 7 illustrates the order acceptance system.

[0027]FIG. 8 illustrates the system management software/TRACSarchitecture.

[0028]FIG. 9 illustrates, in diagrammatic form, the delivery process formanaging and executing the activities associated with inbound andoutbound movement of goods.

[0029]FIG. 10 illustrates diagrammatically the traffic managementnetwork of all incoming and outgoing deliveries.

[0030]FIG. 11 illustrates the logistics system interfaces.

[0031]FIG. 12 illustrates the delivery subprocess for order deliveryplanning.

[0032]FIG. 13 illustrates the delivery process flow charts for orderconsolidation.

[0033]FIG. 14 illustrates the delivery subprocess for carrier selection.

[0034]FIG. 15 illustrates a delivery subprocess for load release.

[0035]FIG. 16 illustrates a delivery subprocess for freight claimmanagement.

[0036]FIG. 17 illustrates a delivery subprocess for freight claimmanagement.

[0037]FIG. 18 illustrates a delivery subprocess for freight claimmanagement.

[0038]FIG. 19 illustrates a delivery subprocess for freightpayment/reconciliation.

[0039]FIG. 20 illustrates a delivery subprocess for proof of delivery.

[0040]FIG. 21 illustrates a product flow from receipt to the stagingarea for storage and ultimately shipment.

[0041]FIG. 22 illustrates a flow chart of a transaction (TR).

[0042]FIG. 23 illustrates a system for hand-held warehouse readingdevices interconnected to a dedicated network through a radio base forinputting and receiving warehouse data.

[0043]FIG. 24 illustrates an inventory management normal cycle overview.

[0044]FIG. 25 illustrates a production receiving schematic.

[0045]FIG. 26 illustrates a vendor receiving schematic.

[0046]FIG. 27 illustrates a put-away schematic for identifying andplacing goods received.

[0047]FIG. 28 illustrates a schematic for workload planning forreceiving orders and placing shipments.

[0048]FIG. 29 illustrates an order-pick schematic for selecting ordersand delivering to destinations.

[0049]FIG. 30 illustrates a batch-pick schematic for selecting ordersand delivering pallets of such orders to warehouse for put away.

[0050]FIG. 31 illustrates an order load and closeout schematic showingthe process for documenting orders and their ultimate filing into thesystem of this invention.

[0051]FIG. 32 illustrates a cycle count diagram for determining productscheduled for processing and movement to inventory as well as updatinginventory.

[0052]FIG. 33 illustrates year-end physical schematic to provide ayear-end inventory count.

[0053]FIG. 34 illustrates a consolidation schematic showing the processof moving goods to new locations for efficient storage and processing.

[0054]FIG. 35 illustrates a return schematic demonstrating the receiptof goods that are returned to either inventory or to quarantine.

[0055]FIG. 36 illustrates an outside storage schematic showing themovement of goods from inventory to storage and ultimately receiving.

[0056]FIG. 37 illustrates the standardized process and end solution forcreating an electronic catalog and system to support it.

[0057]FIG. 38 illustrates the relationship of an electronic catalog tothe various components using it.

[0058]FIG. 39 illustrates the information stored in an electroniccatalog.

[0059]FIG. 40 illustrates how the electronic catalog accessesinformation in various data bases.

DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS

[0060] In describing preferred embodiments of the present inventionillustrated in the drawings, specific terminology is employed for thesake of clarity. However, the invention is not intended to be limited tothe specific terminology so selected, and it is to be understood thateach specific element includes all technical equivalents which operatein a similar manner to accomplish a similar purpose.

I. Order Management

[0061] Referring to FIG. 1, it shows an overall schematic of the orderprocessing data flow, based on an IBM AS/400 platform. The figure isself-explanatory and will be amplified in the following description ofthis invention by reference to the specific figures that go into thenecessary detail.

[0062] Referring to FIG. 1a, there is shown the software functionsresident in the networked AS/400s and interconnected PCs. The PRISMsoftware resides on AS/400 1.a., Software 2000 resides on AS/400 1.b.,and Shipment Management System (SMS) software resides on AS/400 1.c.AS/400's 1.a., 1.b., and 1.c. are networked and support PCs 1.d. thathas resident enabler software Flashpoint shown as 1.e. Also, residing inthese PCs are solution software 1.f. for creating DEALS, purchasinginterface, pricing and profitability (hereinafter described). The SMSsoftware in AS/400 1.c. supports PC's 1.g. having Flashpoint software1.e. and TRACS load builder software 1.h., hereinafter described. Theimplementation of both solution softwares (1.f. and 1.h.) are unique tothis invention.

[0063] Generally, the GUI (graphic user interface) consolidates thevarious fields by pulling data from numerous screens into one screenused by a customer service representative. When a specific field isentered, the interface updates the supporting multiple screens therebysaving time while interacting with a customer. The resulting screen isuser friendly and responds to queries in real time.

[0064] PRISM software on the AS/400 platform interfaces with Flashpointsoftware on the PC platforms to allow the creation of the abovedescribed user friendly screens, and to interact with other modules ofthis invention. The enabler software between the PRISM customer ordermanagement software and the Flashpoint software is the Rhumba 400 andIBM PC support. This interface also talks to Software 2000 thatmaintains accounts receivable (A/R) files. It also allows for keepingseparate data stored in synchronization without having the data keyedin.

[0065]FIG. 1b further describes the relationship of input devices (2 and4) to the system which captures sales representative and customeractivities including financial data. Shown here is the use of Gelcochecks (6) and input devices (2 and 4) to input and manage DEALS (8).Gelco (6) is an existing vendor that allows checks to be written tocustomers for a variety of reasons. The Gelco checks (6) and informationfrom input devices (2 and 4) then are fed into the DEAL system (8), toproperly reflect discretionary spending. The information from the DEALsystem (8) is transmitted to the order management system and updates thecontrol function (10) where it creates activity reporting (12) to giveinput for sales representative reports, customer profitability reports,pricing reports and deals and discretionary reports. The informationalso flows from order management update control to pricing function (14)where the details of pricing are worked out using product costs, freightincrements, profit margin, market adjustment and other charges to createcorrect pricing. Likewise information flows from order managementupdates and controls to financial systems (16) where appropriatefinancial records are created. These include invoicing, credit memo,accounts payable checks, price lists and discount lists, among manyothers.

[0066] Referring to FIG. 2 the order fulfillment architecture hasmultiple inputs from computer integrated manufacturing systems atvarious locations as well as from warehousing data base (24).Information on the activities at these various sites are fed into thecentral customer order management (COM) (26) function and at the sametime, information is fed to a software package supplied by a vendorknown as Software 2000 (28) Accounts receivable and the general ledgerfunctions are created using Software 2000 (28). The foregoing functionsare performed on an AS/400 platform. Data from the customer ordermanagement system is transmitted to Flashpoint software (30), thatresides on personal computers or like equipment such as work stations.This software is used as a basis to create business scripts (32, 34, 36and 38) that are displayed on each personal computer to aid customerservice representatives in taking and creating orders.

[0067]FIG. 3 demonstrates one of the screens created for the orderfulfillment function used by a customer service representative. Shown inFIG. 3 are the various files that have been created based upon theFlashpoint software. Unique to this system is the windowing of suchfiles in one location for a customer service representative so that heor she does not have to page back and forth through the software whileengaged in a discussion with a customer to create an order. As a result,orders are taken and fulfilled promptly in a real time mode because thefile folder serves as a main menu which can be navigated using the mouseto select a business event unlike in the past where there was much delayin the process.

[0068]FIG. 4 shows another order fulfillment screen used by customerservice representatives. It is entitled Customer Master File MaintenanceSelection and by use of a mouse the customer service representative canquickly navigate through the basic data on a customer and if necessaryupdate it based upon the interview. This submenu has been customized toa series of radio (40, 42) and push (44) buttons in order that themajority of the navigation can be accomplished by single mouse clicks.

[0069]FIG. 5 shows a further screen entitled Maintain Customer MasterControl Screen used by customer service representatives. This screen hasthe basic data for each customer and once again can be navigatedpromptly to update it if necessary. If the information is correct it isthe basis for creating the customer records used throughout this system.This screen is populated by data entered on previous screens in orderthat the screen user does not have to re-key, thus eliminating apotential for unsynchronized master files. Also, the “Bill To” and “ShipTo” screen sequence is customized for this presentation. “Ship To”navigates forward through related screens then automatically navigatesin reverse, and activates Software 2000 customer maintenance filessaving the operator the navigation.

[0070]FIG. 6 is entitled Order Form and it has the basic informationblocks to be completed in creating an order by a customer servicerepresentative. This screen has the series of buttons added to easilyallow access to additional screens. The “Resource Description” (50) and“Sm” (52) fields were pulled in from other screens.

[0071] Shown in FIG. 4, 5 and 6 are radio buttons as well as well asnormal push buttons to indicate functions that may be selected by theoperator to allow real time navigation through the files supportingthese screens. The feature of updating files forward and backwardsresults in error free master files.

II. Financial

[0072] The Exception Resolution process design (103) involves putting inprocedures and policies to ensure customer service levels. This beginswith the order acceptance process all the way through the collection andapplication of cash. For any problems that arise in that process willhave procedures and policies to handle and resolve them.

[0073] Referring to FIG. 7, Order Acceptance (100) is the beginning ofthe entire process. Data can enter the system via two ways, (1) manualentry from the customer service representative and the tool they use isa Knowledge Ware based application that interacts with the AS/400, PRISMsystem for manually taking orders or (2) by EDI transmissions. At orderacceptance the system goes through a variety of validations shown on theleft-hand side of this diagram as a process called Rule Validation(102). Validated order and customer attributes include, but are notlimited to, the order lead time required from the customer, theirdelivery schedules, whether delivery schedules can be met, their credit,available inventories and production times for their products and likerules. This feedback is conveyed to the customer while on the telephone.With the EDI scenario exception reports will be created and conveyed tothe customer.

[0074] Logistics (104) primary objective is to reduce the outbound andalso the inbound freight costs of the organization. This is accomplishedin a couple of ways (1) by using software to consolidate the less thantruckload shipments to different plants to have better utilization ofthe trucking operation. It also houses a low cost core carrier list tobe utilized to expedite shipping processes and to monitor theperformances of carriers.

[0075] Pricing (105) is in software residing on a LAN file server. It isgeared towards looking at customers, markets and products. In addition,it brings in other business data like product cost, profitabilitytargets, where customer shipto's are located, freight delivering cost todevelop delivery pricing to customer and FOB pricing picking upshipper's dock. Included are market adjustments, overhead, et cetera, tobe used to compile and work out a customer product pricing. (Also seenon FIG. 1a (14)).

[0076] Warehousing (106) is designed to ensure inventory accuracy, putaway and retrieval of inventory in an expedient fashion, to validate theorder to ensure what is loaded on the truck, and to ensure alldocumentation prepared for the shipment is accomplished.

[0077] DEALS (8) includes discretionary spending, negotiating deals withcustomers by writing them an AP check to rebate for performance,initiating a credit memo to them on account, giving them a “Gelco check”for buying advertisements, or buying down their price for specialpromotional activities that customers may undertake. Also, the salesrepresentatives will have the ability to put discount lists into thesystem via this DEAL system (8) to give them a special allowance. Thisinformation is fed into PRISM and shows an allowance off of theirinvoice when invoicing occurs. The sales representative can create acredit memo to issue invoice errors and apply the amount to a pre-setaccount.

[0078] This DEAL system (8) also houses the sales representatives'targets by product category and customer by which they will be measured.This also gathers the data to support customer profitability reporting.

[0079] Performance Reporting (112) is where all the data comes together.This is outside of the AS/400 environment, on a LAN file server, togather data from the order acceptance, the invoicing, the pricing, theshipping and the DEALS (8) function, plus brokerage fees to brokeragecompanies that service accounts. From this data is generated all of theperformance reportings such as sales representative activities, customerprofitability, analysis of movement trends and the like. There will be acustomer score card created to rate the customer for profitability,volume and the like. This data is used for management decisions relatedto this customer.

[0080] Order Fulfillment (114) is used after order acceptance and itgets the product picked and packed at the warehouse, closes the order,and generates all necessary documents.

[0081] Credit Memo (116), G/L (General Ledger) (118), AP (AccountsPayable) System (120), Accounts Receivable System (122), how customercredit is established, and procedures (how they interact at order entrytime is important), and are all traditional accounting functions.

III. Logistics

[0082] Order Planning

[0083] Referring to FIG. 8 entitled SMS/TRACS Architecture, (SMS, alsoknown as shipment management system) which is a vendor suppliedsoftware. The diagram shown in this figure lays out the relationship ofthe hardware in this system as well as the supporting software. It isunderstandable by one skilled in the art upon examining this figure andwill only be touched upon lightly. The main frame has resident softwarefor providing order management. This software communicates with theAS/400 (150) which is networked with other AS/400s to create the basicinformation network. Residing on the AS/400 (150) platform is the SMSSoftware supplied by ITLS of Canada, and on the PCs the TRACS Softwaresupplied by Westeley Development Corp. of Stamford, Conn. This combinedsoftware has the functions indicated on the drawing and alsocommunicates with an accounting function supported by Software 2000(28). The SMS/TRACS software residing in the AS/400 (150) furthersupports PCs (152) or work stations or the like with informationgenerated by the AS/400 (150) resident software on rates, customerinformation and less than full truckload shipments. This softwareprovides for consolidation of less than full loads, as well as createsshipment and load reports. It likewise creates information feeding backto the AS/400 (150) to create shipping instructions. The use of thishardware and software combination uniquely supports the logistics systemfor load building. The load builder function includes load tendering,load planning, load confirmation and load inquiry to build loads. Thisallows handling multiple orders to create a load.

[0084]FIG. 9 is a diagram of the delivery process for managing andexecuting activities associated with inbound and outbound movement ofgoods. Shown in the diagram is the function of incoming orders (154)from customers as well as distribution center replenishment, informationon returns and purchase of raw materials generated through POs. Thisinformation flows to the order consolidation function (156) from whichinformation goes to the function for carrier selection (158). Thecarrier selection function (158), as further described hereafter, goesthrough a series of decision making steps to select the correct carrierfor the correct destination and load for that carrier and takes thisinformation and sends it to the load release receipt function (160)where data is created to input to the carrier monitoring function (162)as well as shipment tracking function (164). From the shipping trackingfunction (164) information flows to the freight claim managementfunction (166) as well as the freight payment reconciliation function(168). There is feedback from the freight claim management function(166) to the carrier monitoring function (162) as the case may be. Thecarrier selection function (158), carrier monitoring function (162),shipment tracking function (164) and the freight payment function (166)all have EDI connections to customers to create data bases necessary tosupport these functions.

[0085]FIG. 10 is a diagram of the traffic management network showing howgoods are received and distributed using the system. It is a system thatallows for multiple tracing of carriers available to deliver goods tocustomers.

[0086]FIG. 11 is a diagram of the logistics system interface. Shown inthis interface are the various software and communications that supportthe system. The Software 2000 (28) supports the accounts payablefunction as previously described. PRISM software (170) supports theorder management function and Software 2000 (28) supports the accountsreceivable function, all of which feed into logistics systems (104)where the various bits of data created are used for support. From thelogistics system (104) outbound orders (172) are received as well asinternal information on production of goods. The logistics system (104)is connected through EDI (174) and fax (176) to carriers for tenderingand accepting delivery.

[0087] Referring to FIG. 12, Order Delivery Planning (300) is whereorders are received from the order management system. The first actionwith the orders is to download them into the system, then sort thembased on ship date, and also by priority such as a quick delivery. Forexample, there are orders for a particular shipping date, those orderswould be sorted into full truckloads including those that are LTL (lessthan a truckload) and customer pickup (the carrier or customer picks theorder up with their private fleet i.e., an XYZ truck or customerarranges their own carrier which means that XYZ arranges ABC carrier tocome and pick it up). Referring to the schedule load appointmentfunction in Box 306, if it is a customer pickup, then an appointment isscheduled to actually come to the dock and load the product. Thewarehouse keeps a list of appointments and times, (i.e., eight truckscan load in one hour, and therefore there are eight time slots for onehour increments) and records the trucks schedules. The dotted line isfor the carrier to actually call in and confirm or set the appointmentwith the warehouse. The arrow coming down indicates that the truck willbe loaded when the carrier arrives.

[0088] If it is not a customer pickup, go to the Full Truckload decisionin Box 308 which questions a full truckload or not. Full truckload meansdid the customer order an entire truckload with their product or istheir order on two separate truckloads. For example, is there half anorder of frozen and half an order of chilled orange juice? In thepresent system, these are two separate orders, and therefore do notcreate a full truckload even though in theory it would be a fulltruckload. If there is a full truckload you go to “carrier selection”which will be two or three processes down the decision tree. If youdon't, the orders are passed onto order consolidation. Again, theprocess here is to determine which are full truckloads and which are LTLshipments. The LTL shipments would again go to the order consolidationfunction which is one of the keys to the entire process.

[0089] Order Consolidation

[0090] Referring to FIG. 13, Box 310 this is the same decision processthat was made in the order delivery planning process of FIG. 12, butinstead, if a full truckload the arrow goes to the left and goes down tocarrier selection. There is no need to go through consolidation becauseit is a full truckload. If it is not a full truckload, go to the orderconsolidation function of Box 312. This results in putting LTL shipmentsinto a full truckload. The system goes through certain decisions todetermine what is the optimal truckload. The next few boxes aredecisions which are made by the software. The AS/400 is able to loadbuild correctly on its resident logic. It is a matter of a logisticplanner's judgment to override the internal logic. For the majority ofthe loads, the load decision is made in the PC based software package toperform the optimal consolidation. The decisions that the actualsoftware goes through are based on a transportation algorithm, insoftware on the AS/400 Platform shown in Box 314. It looks at a deliverywindow which means when does that product need to be delivered? Mostorders are sorted by shipment date. If an order is shipped on Tuesday,the query is when does it need to be delivered? The query is, how longdoes it take for a product to get to a certain area, in other words,from Dade City to California it could take two days, but from Dade Cityto Las Vegas it also might take two days. This data is used to decidewhether those two orders can go on the same truck, i.e., can it fit thedelivery window based on the guaranteed delivery date for that customer?The system looks at a window delivery and asks if the loads can beconsolidated based on transit time, et cetera.

[0091] Further, the function shown in Box 316 asks if they can beconsolidated if the delivery window is compatible and if the customershipped to is the same?

[0092] The next decision is shown in Box 318 and asks if it is atruckload? Of course, if a full truckload is determined there is no needto proceed. This would be the optimal consolidation if a half atruckload of frozen and a half a truckload of chilled orange juice go tothe same customer. Then you have full truckload going to the samecustomer and delivered on the same day, for optimal consolidation. Ifthe arrow to the left says there is a full truckload, the decision treegoes down immediately into carrier selection.

[0093] If the decision shown in Box 320 says there is not a fulltruckload but two orders are going to the same customer, it then looksat other orders going in the same destination area. There is basicallyone more check within the destination area. If not, it goes back intothe rest of the orders for the next consolidation which is the arrow tothe right.

[0094] If it is in the same destination area, then it goes to Box 322the origin area locations 1 and 2. The system would try to put allorders for location 1 before putting location 2. If not in the sameorigin area the arrow goes to the right and it goes back into potentialconsolidation with other orders. If yes, it is in the origin area, thenthe decision arrow going down indicates it might be consolidated.

[0095] The decision shown in Box 324, “form”, means the form of theproduct, i.e. frozen, chilled or dry, because the way it is loaded inthe truck makes a difference. Frozen goes in the nose of the truck,followed by chilled, and then dry. The reason for this is the locationof the cooling unit. Therefore, these should be loaded exactly oppositeof the way the truck is built. Stop 1 would be dry, stop 2 chilled, andstop 3 frozen to prevent unnecessary unloading. Consolidation isdetermined in this form.

[0096] The decision shown in Box 326 is the consolidation process. Thepreceding decisions result in the consideration input to Box 328 toconsolidate loads by picking the furthest and latest point away and tobuild the truckload from that information.

[0097] The decision of Box 330 is to select the next closest, i.e.shipment to Los Angeles and San Francisco (next closest). It looks atthe next closest load that fits the other requirements (form,destination, origin, et cetera).

[0098] The decision of Box 332 says does it fit the time and capacity?Capacity means “x” amount of weight and truckload (for juice it is about44,000 lbs meat 36,000 lbs). The difference being that the meat productis packed different on the pallet to only get about 20 pallets on atruck, and the way the meat is stacked results in about 36,000 lbs, notfully cubed out most of the time. Juice products are case goods that arestacked accordingly and can obtain fully cubed out pallets of about44,000 lbs. Therefore, two 25,000 lb juice orders cannot be sent on thesame truck or the load will be 50,000 lbs and the truck would be overweight and not legal.

[0099] If the decision is yes, then go to Box 334 which says is there44,000 lbs of juice or 36,000 lbs of meat. This data is compared tomaximum truckload weight. If it is maxed out, then the orderconsolidation is finished. If not, then more orders need to be picked toget up to that truckload amount.

[0100] If yes, the consolidation is finished, then go to Box 336 andanswer what is the cost of delivering these orders. The cost of fulltruckload rates is built into the system for carrier X.

[0101] The next decision Box is 338 which asks if that is acceptable.The logistics planner is going to use his judgment when he sees what thesystem calculates and the cost. If not acceptable, then it will go backto consolidation and possibly change the parameters. It might be donemanually with the system actually calculating the difference in freight.If it is not acceptable, there is the option to do a manual load build.

[0102] If acceptable, go to Box 340 which says is it a full truckload?This means that it may not be a full truckload and there may only be somany orders which can be consolidated or weighted out (44,000 lbs). Ifthere are not enough full truckloads from of all these orders, whichdoes occasionally happen, some LTL carriers do their own loadconsolidation and pick up small orders from various customers and go toa dock and break bulk terminal to put loads together on the same truck.These carriers are more costly due to the personal consolidation andhandling of the product. The ultimate goal is to build full truckloadsto lower the freight costs rather than have someone else do it.

[0103] If not, go to LTL carrier assignment. The lowest cost-LTL carriershould be tendered the load. If it is a full truckload go directly tocarrier selection, which is assignment of a full truckload carrier.Either way, there is a carrier selection process.

[0104] Carrier Selection Process

[0105] Referring to FIG. 14, beginning with the economic truckloaddecision shown in Box 342, meaning from a weight standpoint it may makesense to actually build it as a truckload even though its not fullyweighted out such as a meat delivery.

[0106] The decision point in Box 344 is customer requested carrier. Acustomer may request a specific carrier. If yes, it goes to Box 352which says to notify a carrier that they have a load. This comes laterin the decision process.

[0107] If not, the decision goes to Box 346 and asks if any of thein-house fleets want the load. If not, go to Box 348 carrier assignment.A database has been designed and setup which contains all of thecarriers, service areas and rates. It looks at all the carriers andpicks a carrier from the list which is decision Box 350.

[0108] Decision Box 350 says give me a list of carriers that haulproducts to those areas. The carrier list identifies the carriers andtheir rates to selected areas. The load is then tendered to the selectedcarrier with the lowest rate, but the lowest may not have the rightequipment available and therefore the decision is made to offer tocarrier B. Therefore, the decision is not only the lowest cost carrierswith available equipment.

[0109] The decision Box 360 feeds into this and says here is a carriermonitoring process which helps you decide which carrier to use not onjust cost factor alone. Even though carrier A may be the lowest costcarrier its service rate may be less than 100%, say 90%, and carrier Bmay be 99% and only cost $10.00 more. Then the decision is to usecarrier B because of the service level considerations. If none of thecarriers have equipment available to haul the load, then go back toin-house carrier. Assuming that a carrier was not found, go to Box 346.At certain times of the year it is difficult to assign carriers toproducts, necessitating the use of in-house fleets.

[0110] Decision Box 352 notifies the carrier. This may be done bytelephone or EDI. If via EDI, the carrier may access their mailbox andsay yes or no. There are certain transaction forms. One is a load tenderform and the carrier would send back a 990 which is an acceptance orrejection of the load. If carrier's are on EDI it would be an efficientprocess. There is also a load tender form which is not in any of theseother process boxes which says this is what the contents of the loadare, for example, the customer, weight, product type, delivery date, etcetera. Rather than relay over the phone, a fax including theinformation is sent to the carrier via load tender form and requestingthe carrier's signature if the load is accepted. After acceptance, theexecuted form is returned via fax. The manual notification of carrierprocess is fax, phone or combination thereof. EDI is the preferredmeans.

[0111] Decision Box 354 is a less than truckload shipment. Certainorders are LTL shipments and need to go through a carrier selectionprocess.

[0112] Decision Box 356 says, has that the customer requested an LTLcarrier? There are only a few carriers that haul LTL shipments. If it isnot a customer requested carrier, then go to the regular carrierassignment decision in Box 348. The decision is no different for an LTLshipment than for a full truckload regarding carrier assignmentconsiderations. The service level of LTL is also considered. In otherwords, carrier A may be a truckload only going to that area andtruckload B may be a LTL carrier going to that service area. If the LTLsgo to California, the decision is to pick that carrier.

[0113] Decision Box 352 says if it is a customer requested carrier thengo through the carrier selection process of Box 352.

[0114] Decision Box 358 says you want the carrier to confirm theappointment, meaning that they will pick up the product at yourwarehouse. This process is done by the carrier calling the warehouse andconfirming the appointment. If they do not confirm the appointment, thencancel the load and follow the exact same selection process, andreassign the carrier's load to another carrier.

[0115] Decision Box 360 feeds into the carrier selection process. Thecarrier monitoring process is likewise involved. -It sets the standardsa carrier must meet before it is selected. Criteria are established suchas 98% on time delivery, 1% claims, meaning damaged product, shortproduct or overages that are related to the carrier. In other words, theload could be shipped short which would not be the carrier's fault, butif the carrier has continual shortages, this needs to be tracked. Thecarrier monitoring process also considers the number of times a carrierrejects a load. For example, if 10 loads were offered and only 8 wereaccepted, it could mean unavailable equipment. Another criteria is thetime it takes to pick up the order at the warehouse, and if they arelate. This is considered an exception to on time pick up. If thestandard is 98% on time and they are 97% on time, this needs to becaptured. The carrier is required to furnish the actual delivery date.The result is a report or score card which gives them a rating. Theselection process is used to weed out the carriers that do not providethe required service level. Based on the report card, the carriage maybe rebid to other carriers.

[0116] Load Release

[0117] Referring to FIG. 15, decision Box 362 basically says that theorder was received from order management and has been through thecarrier selection process, load consolidation, et cetera because forload release purposes the order that the loads are going to be put onthe truck, which loads are going to be put together on the same truck,etc. is required.

[0118] Decision Box 364 is the order release portion. At that pointthere is a decision as to whether the order is going to be shipped.Logistics would actually confirm and send it to the warehouse to beshipped.

[0119] Decision Box 366 says generate a pick ticket. A pick ticket issomething that is used by the warehouse to determine the location that aproduct is stored. It shows the products to be put on the truck by SKUlevel. It states for example that 100 cases of Florida Gold and a 64 oz12 (12 64 oz to a case) are needed. It may then pick 100 cases of OldSouth Premium chilled orange juice 8 oz bottles that are 84 to a case.It locates product by SKU level and instructs placement on the truck byorder. It may have multiple orders for one truckload. Box 374, going offto the left of order release, is another pick ticket which is the sameas decision Box 366.

[0120] Decision Box 376 is where you actually load the truck. Again, youneed to load the truck and take into consideration commodity types.Decision Box 376 determines how you actually load the truck, frozen,chilled and dry.

[0121] Decision Box 368 says the load needs to be closed. At the timethe load is closed, the SMS software in the warehouse produces a screenthat says the product that is going to the Supervalue in Omaha, Nebr.consisting of 200 cases' of Florida Gold and 300 cases of Old South at aparticular weight. In order to change the count, a warehouse person mustverify the count, in other words override the 200 cases of Florida Goldto 201. The weight is either manually or automatically calculated. Atthat time the Bill of Lading is generated, by the PRISM software systemusing an SKU number so that a change in quantity would automaticallychange weight. A four digit alpha code designating the carrier is usedto produce that information directly on the Bill of Lading, closing theload and generating the Bill of Lading.

[0122] Decision Box 370 means that information feeds into the invoices.It feeds into Box 368 as well and says yes that product was shipped. Asa result, an invoice is created.

[0123] Decision Boxes 370 and 372 are information which feeds to thefinancial data base.

[0124] Returning to decision Box 380, a Bill of Lading is generated,which is a legal document that the carrier must retain on the truck atall times as he-is hauling the product. This states the products thatare on the truck; where the products are being delivered, and thecarrier. It is a legal document required by the ICC for shipments oninterstate highways. A Bill of Lading is generated by the system afterthe information in Box 368 is inputted to close out the load.

[0125] Decision Box 382 says that the driver signs the Bill of Lading.The driver basically signs that the received that product. In otherwords, I received in my truck 200 cases of Florida Gold orange juice.When It gets to the other end and the customer says I only received 199cases, the carrier is held accountable. He's basically signing to saythat yes, I received 200 cases of product. It also makes it a fullyexecuted documents for legal purposes.

[0126] Decision Box 382 says that the Bill of Lading on file should havebeen executed by the driver to verify any information that may needed ata later date.

[0127] Decision Box 384 is a completed Bill of Lading after the driversigns it.

[0128] Freight Claim Management

[0129] Referring to FIG. 16, decision Box 386 indicates a phone callfrom the carrier/customer. The carrier has to call while he's at thecustomer's dock, but it could also be the customer that calls. At thispoint go to freight claim management in decision Box 388 if there is aclaim.

[0130] Decision Box 390 is when a phone call is received from thecarrier or customer, a sequential incident number is assigned. It iscalled an incident number because at this point there is no decision asto whether it is going to be a claim or not. It tracks all instances ofoverages, shortages, and damages (OS&D).

[0131] Decision Box 400 says to generate any credit/debit memo for anyOS&D. If after going through the entire claim process and determiningthat there is an OS&D and its the shipper's fault, then generate a debitand credit memo so that its outside of this process. If there is an OS&Dinvolved the customer will not pay for that. If it ordered the 200 casesof Florida Gold orange juice and only got 199, short 1 case, it willonly pay for 199. A debit/credit memo is generated to accountsreceivable so that when that customer pays for that invoice its onlygoing to pay you for 199. The customer's accounts receivable is thenupdated.

[0132] Decision Box 410 says to notify order management caseworker ofreported shortages and damages. In other words, the carrier calls andreports the customer's shipment was short or damaged. Order managementis notified.

[0133] Decision Box 412 says to notify a caseworker to be proactive withcustomers to settle potential claims.

[0134] Decision Box 414 says that because there is a reported shortageor damage to notify the warehouse to resolve inventory discrepancies.

[0135] Decision Box 416 says this is what you do if its a damage report.

[0136] Referring to FIG. 17, on the next page, decision Box 418 and saysthis is a damage report. Damage report being different than an overageor shortage. An investigation is conducted resulting in a report whichsays here are the circumstances concerning the freight claim.

[0137] Decision Box 452 says to record the damage reason in incidentdatabase. This is done to identify if a particular product keeps gettingdamaged in transit. The information is recorded in this database fordamage from packaging, carrier mishandling, etc. to track the damages byreason code to correct the situations. With carrier problems this can betransferred to their report card as part of the carrier monitoringprocess.

[0138] Box 420 says was this an in-house carrier? The reason for this isbecause they are treated differently. If yes, go to decision Box 422 andthe report is resolved within 48 hours, at that point it may take someinvestigation to determine who was at fault. If its not resolved within48 hours (maximum amount of time on internal claim) go to decision Box436, explained later. If resolved within 48 hours, and fault assigned,go to decision Box 424.

[0139] Decision Box 426 assigned the cost for damage to a carrier orshipper.

[0140] Decision Box 428 says, is the actual amount of damage over$25.00, if so, file a claim with carrier in decision Box 440. There is anine month period in the United states and three months in Canada tofile an ICC claim/form which identifies what the product was, damage anddollar amount.

[0141] Decision Box 420, is basically the same decision that is made foran outside carrier that is made for an in-house carrier. If its thecarrier's fault, go to Box 428 and determine if its over $25.00 and gothrough the decision if a claim is to be filed. If its not the carrier'sfault, the shipper absorbs the cost.

[0142] Decision Box 432 is a damage report to find out why there iscontinuing damage. That's why the incident database is created. Theright hand side is non-damaged, that is short or over. First, decide isthat report over $25.00. If yes, go through the regular investigationand file the damage portion.

[0143] Referring to FIG. 18, decision Box 442, (note previous page) thecarrier has 90 days (set by ICC) to respond to a claim and acknowledgeit. There is a standard acknowledgement form.

[0144] If not in 90 days, go to decision Box 444 and file a claim tracerwhich says a claim was filed, why haven't you responded. If responded in90 days, it is acknowledged. Otherwise the carrier must say yes, Ireceived your claim and am doing further research. Nothing needs to besettled in this 90 day period. Follow up on promptness of settlement isused for carrier scorecard.

[0145] Decision Box 448, if resolved, then carrier is-paid.

[0146] Decision Box 450, if carrier doesn't pay within 60 day period,deduct loss from freight bill per agreement with carrier.

[0147] Freight Payment/Reconciliation Process

[0148] Referring to FIG. 19, this is the process to pay the carrier fortheir freight.

[0149] Decision Box 454 is PRISM software. Arrow down says pass an orderwhether full or LTL to logistics. Logistics does its whole process andgoes through load consolidation and carrier selection (note the rateestablished for the carrier). This rate information is fed back intoPRISM.

[0150] Decision Box 456 provides that because the carrier is known thereis no need to perform a reconciliation anymore. A carrier sends afreight bill including mileage, stop off charges, dividers, requiring a100% audit of those freight bills back to the Bill of Lading. On theBill of Lading is hand typed the actual amount of freight that isexpected to be paid. Again, the carrier selection process lists thecarrier and the rates they charge so when a carrier is selected andthey've accepted the load, the system actually takes that freight amountand prints it on the Bill of Lading. This allows the freight bill to beused to perform a reconciliation, and pay the carrier directly by goingand approving the payment (a final check before you release those billsfor payment).

[0151] Below decision Box 456 is payment approval that may be going ononce a week by paying carrier ABC for all the loads hauled this week togenerate one invoice in a summary type format that shows up the loadsthat went out in the five day period. Then “hold five days” initiallyfor the purpose of additional charges that may occur while deliveringthe load. For example, the driver may be retained at a customer's dockfor a specific reason, resulting in a detention charge, so the carriermay bill for that depending on the rules that are in effect for theirrate. All such information is captured within that five-day period. Fivedays is not fixed so the system can be modified to have a separateadjustment process where the initial estimated freight charges are usedbased on what is shown on the carrier selection process and a separateadjustment charge made when this detention occurred resulting in anadjustment to that particular invoice/order number. For example, once aweek all payment due to carrier ABC are sent from Box 456 saying make afreight payment, to S2K software in finance. The payment request wouldbe interfaced into accounts payable. The coding is performed within thelogistics process using the account numbers with interface into accountspayable.

[0152] The line item out to the right of the hold five days area called“delivery proof/freight bill” is a request for the carrier to send proofof delivery on all freight bills on an exception basis.

[0153] Proof of Delivery

[0154] Referring to FIG. 20, decision Box 458 indicates the carrierarriving at the customer's warehouse and unloads which is decision Box460. During that unloading process, the carrier gives the warehousemenat the customer's dock a detailed list of all the products that he isdelivering by SKU. The warehousemen at the customer's dock isresponsible for confirming the condition and quantity of the load. Atdecision Box 462 it is determined if there needs to be any changes tothe Bill of Lading for OS&D. The customer would actually change the Billof Lading as part of decision Box 462.

[0155] Go to decision box 464, and if there are any OS&D, the carrierneeds to notify the caseworker. The carrier is required while at thecustomer's dock to call and say if there is a problem (discussedearlier). He needs to notify the shipper again to be proactive with thecustomer and the shipper determines if a back order or shipment isneeded, or whatever else, to satisfy that customer's needs.

[0156] Decision box 466 says that after the carrier has notified thecaseworker that there are no changes to the Bill of Lading, the customersigns the Bill of Lading and this is proof of delivery. The earningsprocess is basically complete at this point.

[0157] Decision box 468 says for the carrier to EDI the freight bill toshipper, or EDI the date and time of delivery to the logistics network.This will further remove paper from the system.

[0158] Decision Box 470 says that the shipper pays the freight bill byaccounts payable, without need of a paper freight bill.

[0159] Decision Box 472 asks, does the customer pay the shipper orrather does the customer make any deduction on the invoice that's inaddition to the agreed upon OS&D, or maybe none was reported and hetakes a deduction on the invoice anyway? Decision Box 474 says thatshipper in this case requests a copy of the Bill of Lading from thecarrier. Anytime there is a shortage in a receivable amount from thecarriers that's not justified or documented, a copy of the Bill ofLading is requested from the carrier. This information is used to adjustaccounts receivable, if appropriate. They are required to be kept onfile for six years by the ICC. This is the only time that this piece ofpaper is required to be delivered to the shipper. If the customer doespay the shipper the full amount, then Box 476 says close C.O. and applycash fully if there are no discrepancies in accounts receivable. TheC.O. is closed earlier in the process.

IV. Inventory Management

[0160] Referring to FIG. 21, there is shown a diagrammaticrepresentation of product flow within this order management system. Atthe head of the diagram is shown the production area (178) where aspallets (402) come off the receiving line and a bar code license plateis attached. Each pallet (402) is scanned and counted as it is loaded onthe pallet train. This information is fed into the inventory managementsystem that connects across the AS/400 network. The pallets (402) areloaded from the receiving train and the license plate and quantity arescanned in the receiving area (404). If there is an error it must becorrected before the pallet (402) is taken into the warehouse. Next eachpallet (402) is stored (406) and the location is scanned. Each time apallet (402) is moved from one location to another the pallet (402) isscanned and counted and a new location is scanned. Likewise there ishold release process (408) where a hold is put on pallets (402) andrecorded in data base. Pallets (402) marked hold cannot be shipped untilthey are released. The pallets when pulled are moved to a shipping area(410) and if partial pallet usage is required, this information isrecorded before pallets (402) are moved back to storage (406). Theshipment is readied from these pallets, and is loaded and Bills ofLading issued.

[0161] Shown in FIG. 22 is a diagram of the software function supportingthe inventory process previously described.

[0162] Shown in FIG. 23 is the hardware system that supports inventorymanagement and control. Hand-held devices (412, 414, 416 and 418) areused in the warehouse to scan pallet license plates and to updateinformation to the data base. The scanned data is received by repeaters(420) and relayed to a base station (422) where through a network (422),this data is related to PCs (428, 430). Information then flows to thenetwork server (432) which supports the inventory function andinformation likewise flows from this network into the reports andadministration function where financial records and the like arecreated.

[0163]FIG. 24 illustrates in diagrammatic function the normal cycle ofinventory management. It shows the functions as they interrelate one toanother. Particularly the production planning (434), production (436),quality assurance (438) and purchasing (440), interacting withproduction receiving (442) and vendor receiving (444) to create thenecessary records and instructions for the put away (446) of inventory.Likewise the order management function (448) inputs data for workloadplanning (450) to assist in making a decision of which goods to use andto pick and load the goods for the carrier (454) and to close out (456)the order and report the information to the logistics functions (104)and feed back information to the order management system (10).

[0164]FIG. 25 shows the logic tree for the production and receivingfunction as implemented in this system and tracks through the productbeing received from production, palletized, inspected and then deliveredto the warehouse where the product is put away and this product isentered into inventory or quarantine with a data base created onlocation by SKU number, lot, quantity and reason for hold, if it is heldin quarantine.

[0165]FIG. 26 is the vendor receiving diagram showing the decision treefor the software to support this function and commences with the receiptof paperwork for items received. The information also is transmitted tologistics (104) at the same time to note the time of arrival of itemsreceived from vendors. Once again, there is an inspection function. Ifthere is a problem, then the material is rejected and the vendornotified. If there is no problem, then the trailer is identified andunloaded and its contents tallied. Once again, if there is a problem,the buyer is notified so that they may contact the vendor. After thematerial is properly documented and inspected it is then delivered tothe warehouse for put away (446) and the information on the material isinputted into the system data base for further use including thepurchasing data base to support an Electronic Catalog, described later.

[0166]FIG. 27 is a decision tree on the put away (446) function. Putaway (446) is the function of storage of items in inventory. As pallets(402) are received, identification is entered using the license plate aspreviously described. The pallet (402) after being identified ispromptly moved to a put away (446) location which has been identifiedfor it. This information is fed into the data base where the systemdetermines if the location is appropriate for it based upon factors suchas the frequency of use and the size and weight of the load. Productsused more frequently tend to be moved to the front of the warehousewhere they can be pulled more quickly. Heavier products tend to beloaded lower in the stack than lighter products. If the location isokay, there is a count made and prompt put away (446) is accomplished.As part of the information in this inventory system are coded dates todetermine if there are perishable items that need to be moved withincertain dates and this is also noted in the inventory records.

[0167] Referring to FIG. 28, workload planning, information on loads arereceived from the logistics function (102) as a basis to create receiveorders (458) with estimated work effort (460) involved to provide apreplan for appointments (462). A carrier calls for appointment fordelivery of goods and makes a dock appointment (464). If the carrier isunable to make appointments, this information is fed to logistics (102)where their records are updated as well.

[0168] Referring to FIG. 29 there is shown the order of pick function indiagrammatic fashion. The decision tree is used to represent functionsembodied in the system software to support the function. Orders are usedto create a selection process based upon the license plate of a pallet(402) to determine the goods stored on the pallet (402). Thisinformation is used to go to a picked location based upon the code datesso that perishable items are picked within their date rules first aswell as the maximizing of the use of pallets by picking full pallets ifthat's what an order calls for, or partial pallets if not. As theprocess continues the driver goes to the location designated and if theproduct is there he picks the product and records it in a hand helddevice which then immediately feeds the information on location, SKU,lot and quantity back into the inventory management system through thehand held network and the driver then delivers his load to itsdestination in the system. A unique feature of this system is that usingdouble-long forks, load picking can be maximized to route a driver topick two pallets in adjacent locations, or in at least nearby locations,rather than run back and forth on a pick cycle. If the driver goes tothe location and there is no product there he then puts a request backinto the system to verify the request and location. If it comes back thesame way, he then inputs this information into the system to create acycle count that will then update the inventory system to show thatthere is an error and the product is not at the place indicated. Thecycle count request will then initiate the second query into whether theinventory is available. If it's not, then there's a notification to thesystem that there is a short order and this information on variances isfed back to logistics and to management functions where it can bereconciled in a new product order. If the inventory is available, thenthis information is fed back into the system and a new pick order isgenerated. Both the availability and non-availability of inventory arefed back into the system so that the system data base can be updated torespond to future pick orders.

[0169] Referring to FIG. 30, shown here is a batch pick function indiagrammatic fashion. Once again a select order of goods is initiatedand the location then is generated for the driver based upon code daterules and whether full pallet or partial pallet are requested. Thedriver goes to the location to see if the product is there. If theproduct is not there, as in the previous order pick function, the cyclecount request is initiated to determine if there is a short order, andif the inventory is available at another location. This information isfed back into the system once again. If the product is there, there is arecord made of the pull of the product by location, SKU lot andquantity. The load is then moved to the staging area from which theorder is picked. A record of the pick is made and if there is a partialpallet picked, then the quantity on the pallet is updated by licenseplate, SKU, lot and quantity. The pallet is then delivered to thewarehouse after the goods have been picked for put away.

[0170] Referring to FIG. 31, there is shown an order, load and closeoutfunction in diagrammatic fashion. Once again the diagram indicates thelogic of the software implementing this function. Having previouslydescribed the functions of picking an order and the loading of theorder, the description shown here is further a description of theprevious function except for the gathering of documents where there isan export of the goods and appropriate Bills of Lading must be createdas well as grade and quality certificates are created and signatures areobtained for the files as needed. After the order has been loaded andthe updates and variances noted, the order is closed out and thisinformation is transmitted to logistics and the order managementfunction. Referring to FIG. 32 there is shown the cycle count functionin diagrammatic fashion as implemented by software in the system. Thecycle count provides for correcting inventory problems that areidentified in the warehouse. The inventory problems could arise fromwrong location of storage of products, wrong SKU number or lot problem.The cycle count is implemented by a visual scan that then enters theinformation of location SKU, lot and quantity. If this information isokay, then that data is fed back into the data base. If it's not, thereis a recount initiated resulting in further query of whether theinformation is okay. If it is okay it gets fed back in the system toindicate that. If not, the inventory is updated. All of this is donewithout paper and is done in a real time fashion using hand-heldinstruments to input the data into the inventory management data base.

[0171] Referring to FIG. 33, there is shown in diagrammatic fashion theyear-end fiscal accounting of inventory. Some of the functions have beendescribed previously and for simplicity reference is made to thisdiagram which is fully descriptive of the inventory count process.

[0172] Referring to FIG. 34, the consolidation function is shown indiagrammatic fashion as implemented by software in this system. Adecision is made in software as to what to do with the product received.The decisions can be to place it on a pallet, at which point in time theold pallet data from which this product was pulled is entered, includingticket and quantity and a new pallet ticket is created. If the decisionis to place the material in a slot, the material is moved to a locationwhere the pallet information and the old tag location is entered tocreate a new location identification. Alternatively, if the decision isto make a manual move of the product, then the old pallet data isentered as well as the new location that the pallet will be moved to, toupdate the records for the inventory system.

[0173] Referring to FIG. 35, there is shown the return system anddocument function. As returns are received, logistics is informed of thetime of arrival of the goods. Simultaneously the truck is unloaded. Theinformation on the material, such as quantity and the shippinginformation is entered into the system and the customer representativeis fed this data on line before the product goes back into theinventory. There is a quality check and after making disposition on thequality, a decision is made as to whether to put the product intoquarantine or back into inventory.

[0174] Referring to FIG. 36, there is shown in diagrammatic fashion theoutside storage decision process. When an order is received, thedecision is made as to whether it's going to be used for production orneeds to be stored. If the decision is for storage, the carrier iscontacted and the material is moved to storage where the data on thelocation and the retrieval cycle is entered. There is electronic datacommunication with the warehouse storage to update the product/lot,code, date and number of pallets and this information is simultaneouslyprovided to receiving to create records of the goods coming into thesystem and having been identified as being stored outside of theshipper's facility.

V. Purchasing

[0175] Referring to FIG. 37, there is shown a process of standardizedpurchasing. By standardizing purchases the process of acquiringmaterials for the system is streamlined. This is accomplished bycreating blanket vendor agreements that have sufficient data onquantity, shipments, charges, delivery times and availability that thisinformation can be entered into an electronic catalog (EC) for use by auser having access to the system.

[0176] Referring to FIG. 38, there is shown in diagrammatic function theelectronic catalog. The different functions of the system using theelectronic catalog are noted on this diagram. The purchasing function isnotable in which request for quotations are prepared based upon itemusage and vendor performance. The analysis for quotes is accomplished bycontract management system which provides for the monitoring ofcontracts vendors. Subsequent vendor's performance is monitored. All ofthis is entered into the data base. Likewise the supplier managementteam, designated by SMT, examines item usage and inquiries as well asordering patterns to determine the historical basis of future orderrequirements, thereby creating a decision basis as to what inventory touse to create a data base of items to be made available on theelectronic catalog. The items will be standardized to the extentpossible and fewer vendors approved to minimize the amount oftransactions necessary for procuring repetitive standardized items.Likewise the information on receipt of goods for receiving schedules andreceipt transactions are supported by the electronic catalog. Managersmay make selections from the electronic catalog using on-line approvalprocedures based upon approved budgets. This information is fed backinto budget and expenditure monitoring programs to update the financialprojections for the year-end to determine if the budget is on target orotherwise out of performance. The electronic catalog also may be updatedby vendors, including price updates, if there is approval for thatpractice with the vendor.

[0177] Referring to FIG. 39, there is shown electronic cataloginformation and storage. The electronic catalog stores information onvendors by request for quotation, quotes received, whether there arecontracts in place, as well as vendor performance and maintains an EDIprofile of the vendor to determine how to communicate with it. Theelectronic catalog also maintains records on purchasing transactionswith the request for items, releases of those purchase order requestsand notes the receipt of the items. Vendor catalogs also may be includedin the electronic catalog if compatible. Items in the catalog aregrouped by commodities, types and class and there is an inventorystrategy as to the stocking of continually used items, if appropriate.The electronic catalog also notes location by company, division,department, user and approval hierarchy. In this fashion the goods maybe identified at any point in time and if necessary retrieved.

[0178] Referring to FIG. 40, there is shown in diagrammaticrelationship, the electronic catalog (500) and how it accessesinformation throughout the system. It can be seen that the electroniccatalog (500) works throughout this network to update (120) accountspayable as well as to show when there has been a payment to or by avendor. The electronic catalog (500) also interacts with the humanresources input system (502) to identify approved users in the system.The electronic catalog (500) also interacts with the transportation,maintenance technique inventory system (504) to identify items for thefleet maintenance system. The electronic catalog (500) also interactswith the ELKE maintenance system (506), and the MRO inventory (508),which is a store room inventory system, to see if items are in stock andto respond to a request by a user, versus having to order the items fromthe catalog. The EC also interacts with the PRISM software (170) toupdate inventory records. As previously stated, the electronic catalog(500) interacts with the vendor (510) to receive quotes and to ask thevendor (510) for requests for quotations and transmit contracts back andforth. This communication is by EDI, supplemented by fax, phone andrelease orders, if appropriate. The electronic catalog notes receipts ofgoods (512), so its data base may be updated.

[0179] Modifications and variations of the above-described embodimentsof the present invention are possible, as appreciated by those skilledin the art in light of the above teachings.

[0180] It is therefore to be understood that, within the scope of theappended claims and their equivalents, the invention may be practicedotherwise than as specifically described.

What is claimed is:
 1. A system for efficiently processing customerorders, comprising: means for receiving customer orders; means forprocessing customer orders; means for automatically checking inventoryfor availability of customer orders; means for retrieving goods frominventory to create loads; means for efficiently building loads; andmeans for efficiently scheduling loads to customers.
 2. A system forefficiently purchasing items, comprising: means for creating blanketvendor orders; means for user input to requisition items; means forprocessing requisition requests by comparing said requisition requestsagainst blanket vendor orders for availability of items; means forchecking the availability of funds against budget to approvetransactions; means for communicating purchase request and purchaserelease to vendor; and means for acknowledging purchase request.
 3. Thesystem of claim 2 further comprising: means for receiving items andcreating a record of receipt; and means for creating an accounts payablerecord initiated by said record of receipt.
 4. The system of claim 3further comprising: means for placing an item in inventory.
 5. A methodfor creating a graphical user interface for a customer servicerepresentative to efficiently input orders, comprising: creating screensin a window context with multiple files, said screens having buttons tocontrol access to files; using said buttons to access customer records.6. A method of managing a logistic system comprising the steps of:creating a network data base; downloading customer order data toterminals to create load criteria; assembling loads based onpre-established criteria; routing loads based upon predetermineddelivery criteria; and generating data to assemble said loads.
 7. Amethod for tendering loads to carriers for shipment comprising the stepsof: creating a carrier data base with information necessary to determineshipping costs and delivery schedules; tendering an offer of shipment toa selected carrier in a predetermined format; and receiving confirmationfrom a carrier.
 8. A method for creating an automated warehousing ticketcomprising the steps of generating a pick-order; picking items frominventory; creating a record of the picked items; transmitting saidorder information to a central data base in real time; delivering thepicked items to shipping point; transmitting data of delivery of itemsfor shipment to said data base; and consolidating the pick and shipmentinformation into a record in said data base.
 9. A method for creating anelectronic catalog comprising the steps of: requesting vendorquotations; creating blanket vendor orders; entering blanket vendororders in a data base; creating pre-approved budgets; creating purchaserequests; requesting items from the blanket vendor order data base;communicating said orders to vendor; receiving acknowledgment of orderrequests; receiving ordered items; and recording receipt of said items.